Good Call is a delivery business that provides its services in cash and on credit. It has a large fleet of vehicles which are subject to depreciation. For the month ending in February 2022, the business reported the following items: Description $ Cash sales 250,000 Credit sales 100,000 Depreciation expense 35,000 Cash receipts for sales from prior periods 60,000 Cash purchase of a vehicle 50,000 Various other expenses 70,000 Assuming all expenses are paid in cash except where an expense is a non-cash expense, calculate net profit/loss under accrual accounting and a net cash flow for the month of February. Show your workings. Ignore GST.
Good Call is a delivery business that provides its services in cash and on credit. It has a large fleet of vehicles which are subject to depreciation. For the month ending in February 2022, the business reported the following items: Description $ Cash sales 250,000 Credit sales 100,000 Depreciation expense 35,000 Cash receipts for sales from prior periods 60,000 Cash purchase of a vehicle 50,000 Various other expenses 70,000 Assuming all expenses are paid in cash except where an expense is a non-cash expense, calculate net profit/loss under accrual accounting and a net cash flow for the month of February. Show your workings. Ignore GST.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 1PB: Consider the following situations and determine (1) which type of liability should be recognized...
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Good Call is a delivery business that provides its services in cash and on credit. It has a large fleet of vehicles which are subject to
For the month ending in February 2022, the business reported the following items:
|
Description |
$ |
|
Cash sales |
250,000 |
|
Credit sales |
100,000 |
|
Depreciation expense |
35,000 |
|
Cash receipts for sales from prior periods |
60,000 |
|
Cash purchase of a vehicle |
50,000 |
|
Various other expenses |
70,000 |
Assuming all expenses are paid in cash except where an expense is a non-cash expense, calculate net
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